CENTER FOR ARMS CONTROL

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1 CENTER FOR ARMS CONTROL AND NON-PROLIFERATION MILITARY BUDGET AND OVERSIGHT PROGRAM 322 Fourth Street NE * Washington, D.C * (202) Online at Fiscal Year 2009 Pentagon Spending Request Briefing Book By Christopher Hellman and Travis Sharp February 2008 Available online: The Bush administration is requesting $515.4 billion for the Department of Defense in Fiscal Year 2009, which begins on October 1, This is $35.9 billion or 7.5 percent more than current levels, or an inflation-adjusted ("real") increase of 5.4 percent. As part of total "National Defense" spending (Function 050) for FY 09, the administration is requesting $15.6 billion for the nuclear weapons activities of the Department of Energy, $5.6 billion for non-dod defense activities, and $4.4 billion for additional mandatory spending. The administration also submitted a $70 billion placeholder figure for ongoing military operations in Iraq and Afghanistan, but in testimony before the Senate Armed Services Committee on February 6, Secretary of Defense Robert Gates provided an estimate of $170 billion in war expenses for FY 09, although he expressed "no confidence in that figure" likely because it may increase over the course of the year. Thus, the Bush administration is asking for $541 billion for National Defense (Function 050) and an estimated $170 billion for the wars in Iraq and Afghanistan in FY 09, a grand total FY 09 request of $711 billion. The Office of Management and Budget estimates that total annual funding for the Defense Department alone will grow to $546 billion by Fiscal Year 2013, a figure which is undoubtedly low. Total Pentagon spending, not including funding for the Department of Energy or for actual combat operations for the period FY'09 through FY'13 will reach $2.6 trillion. Meanwhile, in January the Congressional Budget Office estimated that the deficit for FY'09 will be $198 billion. This estimate assumes that only $70 billion will be appropriated for military operations in Iraq and Afghanistan, and does not include the additional supplemental funding that will be requested later in the year. Christopher Hellman is the Military Policy Fellow at the Center for Arms Control and Non- Proliferation, where Travis Sharp is the Military Policy Analyst.

2 TABLE OF CONTENTS HIGHLIGHTS 3 TOPLINE 5 WEAPONS 7 BALLISTIC MISSILE DEFENSE (BMD) 8 UNMANNED AERIAL VEHICLES (UAV) 10 DISCRETIONARY 11 U.S. MILITARY SPENDING VS. HISTORICAL HIGHS 12 U.S. DEFENSE SPENDING, IRAQ AND AFGHANISTAN WAR FUNDING 14 U.S. MILITARY SPENDING VS. THE WORLD 16 2

3 HIGHLIGHTS "Top Line" Funding - The Bush administration is requesting $515.4 billion for the Department of Defense in Fiscal Year 2009, which begins on October 1, This is $35.9 billion or 7.5 percent more than current levels, or an inflation-adjusted ("real") increase of 5.4 percent. As part of total "National Defense" spending (Function 050) for FY 09, the administration is requesting $15.6 billion for the nuclear weapons activities of the Department of Energy, $5.6 billion for non-dod defense activities, and $4.4 billion for additional mandatory spending. The administration also submitted a $70 billion placeholder figure for ongoing military operations in Iraq and Afghanistan, but in testimony before the Senate Armed Services Committee on February 6, Secretary of Defense Robert Gates provided an estimate of $170 billion in war expenses for FY 09, although he expressed "no confidence in that figure" likely because it may increase over the course of the year. Thus, the Bush administration is asking for $541 billion for National Defense (Function 050) and an estimated $170 billion for the wars in Iraq and Afghanistan in FY 09, a grand total FY 09 request of $711 billion. The Office of Management and Budget estimates that total annual funding for the Defense Department alone will grow to $546 billion by Fiscal Year 2013, a figure which is undoubtedly low. Total Pentagon spending, not including funding for the Department of Energy or for actual combat operations for the period FY'09 through FY'13 will reach $2.6 trillion. Meanwhile, in January the Congressional Budget Office estimated that the deficit for FY'09 will be $198 billion. This estimate assumes that only $70 billion will be appropriated for military operations in Iraq and Afghanistan, and does not include the additional supplemental funding that will be requested later in the year. Funding for Contingency Operations (Supplemental Appropriations) In addition to its annual budget request, the Pentagon is also requesting $70 billion in supplemental funding for combat operations for Fiscal Year According to the Pentagon, this is only a partial figure, and additional funds will be requested later in the year. In testimony before the Senate Armed Services Committee on February 6, Secretary of Defense Robert Gates provided an estimate of $170 billion in war expenses for FY 09, although he expressed "no confidence in that figure" likely because it may increase over the course of the year. Congress has already approved nearly $700 billion in supplemental funding for operations in Iraq and Afghanistan and an additional $126 billion in FY'08 war funding is still pending before the House and Senate. Missile Defense The administration is requesting $8.9 billion for the Missile Defense Agency (MDA) in FY'09, up roughly $350 million from the current $8.6 billion. The request includes $720 million for the third missile defense site in Europe ($96 million for development, $382.6 million for fielding, and $241.2 million for military construction). Missile defense continues to receive more funding than any other weapons program in the annual Pentagon budget. The $8.9 billion total does not include $2.3 billion for the SBIRS-High satellite program and a further $1 billion for programs such as Patriot and MEADS that are being funded directly by the services. Including these non-mda programs increases the total FY'09 request for ballistic missile defense to $12.2 billion. 3

4 Shipbuilding The request includes funding for the continued development of the Aircraft Carrier Replacement Program ($4.2 billion), the DDG-1000 [DD(x)] Destroyer Program ($3.2 billion for one vessel), and the Littoral Combat Ship ($1.3 billion for two vessels). It includes $3.4 billion for the purchase of one SSN-774 "Virginia" class nuclear attack submarine. Aircraft The request includes $2.0 billion for 23 of the Navy's F/A-18E/F "Super Hornet," $2.7 billion for procurement of 36 V-22 "Osprey" tilt-rotor aircraft, $6.7 billion for 16 F-35 Joint Strike Fighters, and $4.1 billion for 20 F-22A "Raptor" fighters. Mine Resistant Ambush Protected Vehicle (MRAP) There is no funding for the MRAP program in the FY'09 Pentagon budget request. This program is being funded instead through supplemental appropriations. For example, Congress approved $16.8 billion in supplemental funding for the MRAP program in FY'08. Military Personnel The request includes an increase in base pay of 3.4 percent. According to the Pentagon, base pay has risen 35 percent since Army/Marine Corps End Strengths The budget request funds an additional 7,000 troops for the Army in FY'09, for a total of 532,400. It also funds an increase of 5,000 Marines, for a total force of 194,000. In all, the Pentagon expects to grow the Army by a total of 65,000 (to 547,400) and the Marine Corps by 27,000 (to 202,000) over five years, a plan that the Congressional Budget Office estimates will cost an additional $162 billion over the 2008 to 2017 period. Joint Improvised Explosive Device Defeat Fund (JIEDDO) - The request includes $500 million for JIEDDO, a program working to develop counter-ied technologies. This FY'09 request is the first time JIEDDO funding has been requested in the "base budget" instead of through war supplementals. Homeland Defense The request contains $17.6 billion for Pentagon activities related to homeland security including detection of and protection against weapons of mass destruction, emergency preparedness and response, and protecting critical infrastructure. The increase in DoD's FY'09 contribution over last year is 1.6 percent. NOTE: A footnote on the 2008 budget's Table "Homeland Security Funding By Agency" (Table S-4) indicates that DoD's contribution to homeland security has been revised upward significantly due to a change in methodology. Thus the 2007 budget shows a $16.4 billion DoD contribution to homeland security in FY'06, rather than the $9.5 billion shown in the 2006 request. The total FY'09 request for homeland security is $68.5 billion. Cooperative Threat Reduction (CTR) "Nunn-Lugar" - The administration is requesting $414.1 million for the CTR (also known as "Nunn-Lugar") program, 2.8 percent below the current level of $425.9 million. The CTR program assists Russia and the former Soviet republics safeguard weapons of mass destruction and related technologies. Prompt Global Strike - The administration is requesting $117.6 million for work on the Prompt Global Strike mission, a DOD effort to place conventional warheads atop long-range missiles in order to provide the capability to strike a small number of urgent targets - such as terrorists on the move or a rogue missile being readied for launch - anywhere around the world. 4

5 TOPLINE TABLE 1. TOP LINE REQUEST (Budget Authority in Billions of Dollars) FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 TOTAL FY 09- FY 13 DOD Military ,631.6 (051) DOE and Other TOTAL (050) ,749.5 TABLE NOTES: All Function 050 and Out Year figures are estimates. For the last several years, the Defense Department has released fewer and fewer figures to accompany their budgets. As recently as the FY 04 request, the Pentagon released DoD, DoE and total 050 funding projections for the entire Future Year s Defense Plan. No longer. Now such projections are done only for those areas of defense spending the Pentagon wishes to highlight. The projected Out Year figures here are undoubtedly low. For example, the Pentagon says that defense funding (Function 051) for FY 09 will be $517.9 billion, yet OMB s figure is a mere $494.8 billion. Figures do not include funding for operations in Iraq and Afghanistan. Totals may not add up due to rounding. SOURCES: Department of Defense, Office of Management and Budget's Analytical Perspectives, Current Services Budget Authority by Function, Category and Program [Table 25-13].) TABLE 2. FY'09 BUDGET REQUEST BY FUNCTION INCREASE/DECREASE FROM FY'08 (Budget Authority in Billions of Dollars) FY 08 FY 09 +/- % Requested Military Personnel % Operations & Maintenance % Procurement % RDT&E % Military Construction % Family Housing* % Revolving Funds % TOTAL (051) % TABLE NOTES: Totals may not add up due to rounding. 5

6 TABLE 3. ACCOUNT PERCENTAGE OF TOTAL DEFENSE SPENDING: 051 ACCOUNT (Budget Authority in Billions of Dollars) FY 09 Requested Percentage of Total Military Personnel % Operations & Maintenance % Procurement % RDT&E % Military Construction % Family Housing % Revolving Funds % TOTAL (051) TABLE NOTES: Totals may not add up due to rounding. TABLE 4. SERVICE BRANCH PERCENTAGE OF TOTAL DEFENSE SPENDING: 051 ACCOUNT (Budget Authority in Billions of Dollars) FY 09 Requested Percentage of Total Army % Navy % Marine Corps % Air Force % Defense Wide % TOTAL (051) TABLE NOTES: Totals may not add up due to rounding. TABLE 5. FY'09 BUDGET REQUEST BY SERVICE INCREASE/DECREASE FROM FY'08 (Budget Authority in Billions of Dollars) FY 08 FY 09 +/- % Requested Army % Navy/Marine Corps % Air Force % Defense Wide % TOTAL (051) % TABLE NOTES: Totals may not add up due to rounding. 6

7 WEAPONS TABLE 6. FY'09 REQUEST FOR SELECTED WEAPONS SYSTEMS (Budget Authority in Millions of Dollars) FY 09 Request Quantity Per Unit Cost Total Program Cost F/A-18E/F Fighter 1, ,388.8 F-22A Fighter 4, ,292.7 F-35 Fighter (JSF) 6, ,824.1 C-17 Transport Aircraft ,462.6 C-130J Cargo Aircraft ,071.1 B-2 Bomber ,114 44,400 V-22 Osprey Aircraft 2, ,636.8 E/A-18G Jamming Aircraft 1, ,689.5 MH-60R Seahawk Helicopter 1, ,701.7 MH-60S Knighthawk Helicopter ,909.6 Aircraft Carrier Replacement 4, , ,028.7 Program (CVN-21) DDG-1000 (DDx) Surface 3, , ,022.1 Combatant Littoral Combat Ship (LCS) 1, ,938.9* SSN-774 Virginia Attack 3, , ,008.2 Submarine LPD-17 San Antonio Landing Ship , ,594.0 LHA Replacement Vessel [LH/LHA] 2.4 3, ,280.9 Trident II D-5 Missile 1, ,901.9 Tactical Tomahawk Cruise Missile ,539.4 Joint Direct Attack Munition , ,301.5 (JDAM) Joint Stand-off Weapon (JSOW) ,611.9 Joint Air to Surface Standoff Missile (JASSM) Small Diameter Bomb , ,483.7 Stryker Interim Armored Vehicle 1, ,130.9 (IAV) Future Combat System (FCS) 3,557.7 N/A 161,930.1 Family of Medium Tactical Vehicles , ,802.0 (FMTV) Expeditionary Fighting Vehicle ,972.1 (AAAV) Armed Reconnaissance Helicopter ,399.3 HMMWV Humvee Vehicles ,249 N/A N/A TABLE NOTES: Total Program Cost for these systems reflects only the cost of Research, Development, Testing and Evaluation (RDT&E). Per Unit Costs and Total Program Costs are based on DoD s Selected Acquisition Report, November 19, 2007, with the exception of the B-2 Bomber, which is no longer listed. Per Unit Costs are derived by dividing total program costs by the number of systems purchased, and include both procurement and research & development funding. SOURCES: DOD FY 09 Budget Request Summary Justification, Major Weapons Systems, February

8 BALLISTIC MISSILE DEFENSE (BMD) Ballistic missile defense continues to receive more funding than any other weapons system in the annual Pentagon budget. Background: As part of its Fiscal Year 2002 budget request, the Defense Department announced a major restructuring of the Ballistic Missile Defense Office (BMDO). Funding for a range of programs within BMDO were absorbed and redistributed into five major areas of research. These are the Terminal, Midcourse, and Boost Segments, the Ballistic Missile Defense Segment, and Ballistic Missile Defense Sensors. As part of the FY'02 reorganization, some specific missile defense programs were absorbed into the general research areas and have, from a funding perspective, effectively disappeared. Meanwhile, as specific systems and technologies mature, they are shifted out of the Missile Defense Agency (MDA) budget into one (or more) of the service budgets. The Space Based Infra-Red System-High (SBIRS-High) continues to be funded outside the MDA budget. FY'09 Request - The administration is requesting $8.9 billion for the Missile Defense Agency (MDA) in FY'09, up roughly $350 million from the current $8.6 billion. The request includes $720 million for the third missile defense site in Europe ($96 million for development, $382.6 million for fielding, and $241.2 million for military construction). The $8.9 billion total does not include $2.3 billion for the SBIRS-High satellite program and a further $1 billion for programs such as Patriot and MEADS that are being funded directly by the services. Including these non-mda programs increases the total FY'09 request for ballistic missile defense to $12.2 billion. Ballistic Missile Defense in Europe - The FY'09 request includes $720 million for the third missile defense site in Europe ($96 million for development, $382.6 million for fielding, and $241.2 million for military construction). In the Missile Defense Agency's budget documentation, missile defense in Europe is known as "Block 4.0" and is meant to "Defend Allies & Deployed Forces in Europe from Limited Iranian Long-Range Threats." Block 4.0 components include: Ten ground-based interceptors (GBIs) equipped with the two-stage Orbital Boost Vehicle (OBV) configuration rather than the three-stage OBV configuration used on the interceptors deployed at Fort Greely and Vandenberg Air Force Base (VAFB). These GBIs are scheduled for deployment at the European Interceptor Site (EIS) in Poland pending an agreement with the Polish government and fulfillment of certain test requirements. The European Mid-course Radar (EMR) currently located at the Kwajalein Atoll, modified and relocated to a site in the Czech Republic pending an agreement with the Czech government. It will provide critical midcourse tracking data for the European Interceptor Site. A forward-based AN/TPY-2 radar. The site for this radar has not been selected, but its placement should enable it to provide information early in the flight of a potential ballistic missile launch and help discriminate threat RVs from associated countermeasures. The C2BMC infrastructure and expanded network enabling capabilities required to support the EIS in Poland and provide sensor management of the EMR in the Czech Republic and the forward-based AN/TPY-2 radar. 8

9 TABLE 7. FY'09 REQUEST FOR BALLISTIC MISSILE DEFENSE (Budget Authority in Millions of Dollars) FY 08 Total FY 09 Request Terminal Defense (MDA) 1, ,019.1 Boost Defense (MDA) Midcourse Defense (MDA) 2, ,076.7 AEGIS BMD (MDA) 1, ,157.8 BMD Sensors (MDA) ,077.0 Space Tracking & Surveillance (MDA) BMD Technologies (MDA) Advanced Concepts (MDA) BMD System Interceptors (MDA) Multiple Kill Vehicle Other Programs (MDA) 1, ,748.3 Joint Theater Air Missile Defense Org. (Joint Staff) Total Ballistic Missile Defense 8, ,946.1 MEADS/Patriot CAP (Army) Patriot/PAC Space Based Infra-Red System-High (SBIRS-High) (Air Force) ,328.2 GRAND TOTAL Ballistic Missile Defense 10, ,259.9 SOURCE: DOD FY 09 Budget Request Summary Justification, Major Weapons Systems, February TABLE 8. FY'09 REQUEST FOR BALLISTIC MISSILE DEFENSE IN EUROPE (Budget Authority in Millions of Dollars) FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 TOTAL FY 09- FY 13 Development ,817.2 Fielding ,884.2 Military Construction Integration Total , , ,538.9 SOURCE: DOD FY 09 Budget Estimates, RDT&E Defense Wide Volume 2 - Missile Defense Agency, February

10 UNMANNED AERIAL VEHICLES (UAV) Unmanned Aerial Vehicles (UAVs) continue to prove their worth on the modern battlefield, performing a wide range of surveillance missions and an increasing number of strike missions as more and different types of armed UAVs enter the arsenal. TABLE 9. FY'09 REQUEST FOR UNMANNED AERIAL VEHICLES (UAVs) (Budget Authority in Millions of Dollars) FY 08 Total Number FY 09 Total Number Global Hawk (Air Force) Predator MQ-1 (Air Force) Reaper MQ-9 (Air Force) Warrior (Army) Shadow (Army/Marine Corps) Raven (Army) SOURCES: DOD FY 09 Budget Request Summary Justification, Major Weapons Systems, February

11 DISCRETIONARY The Fiscal Year 2009 budget request includes $997 billion for discretionary spending, money the President and Congress must decide and act to spend each year, roughly $541 billion of which will go to the Pentagon. The "National Defense" category of the federal budget for FY'09 represents over half of all discretionary spending (54 percent). [NOTE: These totals do NOT include funding for military operations in Iraq and Afghanistan. If the $70 billion requested for the "Global War on Terror" were included in both the request for the Department of Defense and the total for discretionary spending, the percentage of Pentagon spending of total discretionary spending would jump to over 57 percent.] The other category of federal spending is mandatory spending, money that is spent in compliance with existing laws that govern the particular program or function. Mandatory spending includes entitlements, which are money or benefits provided directly to individuals such as Social Security, Medicare, Medicaid, Food Stamps, and Federal Retirement. It also includes interest payments on the national debt. GRAPH 1. 11

12 U.S. MILITARY SPENDING VS. HISTORICAL HIGHS GRAPH 2. 12

13 U.S. DEFENSE SPENDING, GRAPH 3. 13

14 IRAQ AND AFGHANISTAN WAR FUNDING TABLE 10. Source: Analysis of Congressional Research Service data. *Budget authority totals include war-related funding for DOD, the State Department, and the Department of Veterans' Affairs. *Breakdown of funding for Iraq and Afghanistan in FY 08-FY 09 is based on the historial 3 to 1 ratio of Iraq to Afghanistan "Global War on Terror" funding. *The FY 03 subtotal of $86.7 billion includes $5.5 billion in unallocated funding. *FY 08 funding includes $16.8 billion for MRAP vehicles in the first FY 08 continuing resolution (CR) and FY 08 DOD Appropriations Bill (HR 3222). *In testimony before the Senate Armed Services Committee on February 6, Secretary of Defense Robert Gates estimated that war funding requests may reach $170 billion in FY 09, although he expressed "no confidence in that figure." TABLE 11. U.S. SPENDING ON IRAQ AND AFGHANISTAN BY MONTH, WEEK, DAY, HOUR, MINUTE, & SECOND (based on adjusted DOD FY 2007 obligations) Iraq Afghanistan Total Per Month $10.3 billion $2 billion $12.3 billion Per Week $2.4 billion $469 million $2.9 billion Per Day $343 million $67 million $410 million Per Hour $14 million $2.8 million $17 million Per Minute $238,425 $46,296 $284,722 Per Second $3,973 $771 $4,745 SOURCE: Data from Amy Belasco, The Cost of Iraq, Afghanistan, and Other Global War on Terror Operations Since 9/11, Congressional Research Service (updated February 8, 2008). Totals may not add due to rounding. 14

15 TABLE 12. HISTORICAL COSTS OF PREVIOUS U.S. WARS (In 2007 Dollars) World War II $3.2 trillion Iraq and Afghanistan To Date $695.7 billion Vietnam War $670 billion World War I $364 billion Korean War $295 billion Persian Gulf War $94 billion Civil War (both Union and Confederate costs) $81 billion Spanish-American War $7 billion American Revolution $4 billion Mexican War $2 billion War of 1812 $1 billion Source: Congressional Research Service and Office of Management and Budget data. 15

16 U.S. MILITARY SPENDING VS. THE WORLD On February 4, the Bush administration released its budget request for Fiscal Year 2009, which begins on October 1, For FY 09, the White House is seeking $711 billion for the military -- $541 billion for the Pentagon and the nuclear weapons-related activities of the Department of Energy, and, according to Secretary of Defense Robert Gates, at least $170 billion for ongoing military operations in Iraq and Afghanistan. The United States is far and away the global leader in military spending. Consider the following: The United States spends more than the next 46 highest spending countries in the world combined. The United States accounts for 48 percent of the world's total military spending. The United States spends on its military 5.8 times more than China, 10.2 times more than Russia, and 98.6 times more than Iran. The United States and its strongest allies (the NATO countries, Japan, South Korea and Australia) spend $1.1 trillion on their militaries combined, representing 72 percent of the world's total. GRAPH 4. 16

17 TABLE 13. U.S. MILITARY SPENDING VS. THE WORLD (EXPENDITURES IN BILLIONS OF U.S. DOLLARS) Country Military Spending (Billions of $) World Ranking United States China Russia United Kingdom France Japan Germany Italy Saudi Arabia South Korea India Australia Brazil Canada Spain Turkey Israel Netherlands United Arab Emirates Taiwan Greece Iran Myanmar Singapore Poland Sweden Colombia Chile Belgium Egypt Pakistan Denmark Indonesia Switzerland Kuwait South Africa Oman Malaysia Mexico Portugal Algeria Finland Austria Venezuela Czech Republic Romania

18 Qatar Thailand Morocco Argentina Ukraine Cuba Angola New Zealand Hungary Ireland Jordan Peru North Korea n/a n/a Global Total (not all countries shown) 1,472.7 n/a *NOTES: The figure for the United States is the budget request for Fiscal Year 2009 and includes $170 billion for ongoing military operations in Iraq and Afghanistan, as well as funding for DOE nuclear weapons activities. All other figures are projections based on 2006, the last year for which accurate data is available. All countries that spent over one billion per year are listed. Sources: International Institute for Strategic Studies, The Military Balance 2008, U.S. Department of Defense. 18

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